{"id":12424,"date":"2010-12-06T14:42:00","date_gmt":"2010-12-06T14:42:00","guid":{"rendered":"https:\/\/hwsmarketindev.wpengine.com\/2010\/12\/06\/blog-bid-55982-stepped-up-enforcement-of-worker-misclassification\/"},"modified":"2026-05-30T04:09:48","modified_gmt":"2026-05-30T04:09:48","slug":"blog-bid-55982-stepped-up-enforcement-of-worker-misclassification","status":"publish","type":"post","link":"https:\/\/www.homeworksolutions.com\/es\/2010\/12\/06\/blog-bid-55982-stepped-up-enforcement-of-worker-misclassification\/","title":{"rendered":"Stepped Up Enforcement of Worker Misclassification"},"content":{"rendered":"<div>\n<h2><span>Nannies and senior home-care workers are not independent contractors.<\/span><\/h2>\n<blockquote>\n<p><span>&nbsp;\u201cMost workers [who are classified as independent contractors] are employees under the FLSA\u2019s broad definitions.\u201d ~ David Weil, Administrator, US Department of Labor Wage and Hour<\/span><\/p>\n<\/blockquote>\n<h2>&nbsp;<\/h2>\n<p>Nannies and senior home caregivers are almost always employees of the hiring family, yet every year thousands of families classify their nanny or senior caregiver as an &#8220;independent contractor&#8221; and fail to pay the employment taxes and unemployment taxes on the wage they pay their family&#8217;s nanny.The IRS estimates that fewer than one in five famlies with a household employee comply with the payroll, tax, and reporting requirements in the tax code. Industry experts place the compliance rate much lower than 20%, and have calculated a <strong>$3 BILLION dollar<\/strong> per year tax gap &#8211; the taxes owed but not collected on household senior homecare and nanny employment.<\/p>\n<p> <!--more--> <\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.homeworksolutions.com\/wp-content\/uploads\/2010\/12\/Most_Workers_are_Employees.jpg\" alt=\"Most_Workers_are_Employees\" width=\"265\" align=\"left\">US Department of Labor Solicitor M. Patricia Smith addressed a labor law conference on October 12, 2010 promising stepped up enforcement of the Fair Labor Standards Act (FLSA) and a crack down on employee misclassification to reverse a \u201cculture of noncompliance\u201d that has developed over the last decade.<\/p>\n<p>&nbsp;<\/p>\n<p>Smith stated that&nbsp; due to reduced enforcement, \u201cmany employers developed a \u2018catch-me-if-you-can&#8217; attitude. Our challenge is to change that attitude.\u201d The Labor Department Labor will implement initiatives to respond to complaints from those who might be fearful of government actions, such as immigrant workers.<\/p>\n<p>&nbsp;<\/p>\n<h3><span>July 2015 Update on Senior Home Care Worker Status:<\/span><\/h3>\n<p><span>On July 15, DOL Administrator David Weil issued an&nbsp;<\/span><a href=\"http:\/\/www.dol.gov\/whd\/workers\/Misclassification\/AI-2015_1.htm\">Administrator\u2019s Interpretation<\/a><span>&nbsp;that said \u201cmost workers [who are classified as independent contractors] are employees under the FLSA\u2019s broad definitions.\u201d This clarification by the government put the final nails in the coffin of the <a href=\"\/blog\/bid\/99381\/Household-Workers-Employee-vs-Independent-Contractor\">independent contractor myth<\/a>.<\/span><\/p>\n<p><span>According to attorney <a href=\"http:\/\/www.jdsupra.com\/legalnews\/surprise-that-independent-contractor-is-64746\/\" target=\"_blank\">Cynthia Effinger<\/a> of <a id=\"ProfileHyperLink1\" href=\"http:\/\/www.jdsupra.com\/profile\/McBrayer_McGinnis_Leslie_Kirklandl_docs\/\" target=\"_blank\">McBrayer, McGinnis, Leslie &amp; Kirkland, PLLC<\/a>, &#8220;<span>The defining question in this calculus is whether the worker is truly in a separate business that is independent economically from the employer. If the worker is economically dependent on the employer, the worker is an employee in the DOL\u2019s eyes.&#8221;<\/span><\/span><\/p>\n<p><a href=\"http:\/\/www.jdsupra.com\/legalnews\/surprise-that-independent-contractor-is-64746\/\" target=\"_blank\"><span><span>Read her full opinion&#8230;<\/span><\/span><\/a><\/p>\n<p>The Obama administration is keen on punishing the employers in FLSA and misclassification cases. Misclassification refers to the fraudulent classification of employees (nannies, housekeepers, etc. in household employment) as independent contractors. Misclassification, along with the employer&#8217;s failure to report wages paid to the IRS, results in substantial tax gaps in unemployment insurance, Social Security and Medicare taxes, and state and federal income taxes.<\/p>\n<p>(Updated August 4, 2015)<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Nannies and senior home-care workers are not independent contractors.<\/p>\n<p>&nbsp;&ldquo;Most workers [who are classified as independent contractors] are employees under the FLSA&rsquo;s broad definitions.&rdquo; ~ David Weil, Administrator, US Department of Labor Wage and Hour<\/p>\n<p>&nbsp;<br \/>\nNannies and senior home caregivers are almost always employees of the hiring family, yet every year thousands of families classify their nanny or senior caregiver as an &#8220;independent contractor&#8221; and fail to pay the employment taxes and unemployment taxes on the wage they pay their family&#8217;s nanny.The IRS estimates that fewer than one in five famlies with a household employee comply with the payroll, tax, and reporting requirements in the tax code. Industry experts place the compliance rate much lower than 20%, and have calculated a $3 BILLION dollar per year tax gap &#8211; the taxes owed but not collected on household senior homecare and nanny employment.<\/p>\n","protected":false},"author":1,"featured_media":12425,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[421,481,511],"class_list":["post-12424","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-nanny-employee","tag-nanny-independent-contractor","tag-worker-misclassification-independent-contractor"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.8 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Stepped Up Enforcement of Worker Misclassification - HomeWork Solutions<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.homeworksolutions.com\/es\/2010\/12\/06\/blog-bid-55982-stepped-up-enforcement-of-worker-misclassification\/\" \/>\n<meta property=\"og:locale\" content=\"es_MX\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Stepped Up Enforcement of Worker Misclassification\" \/>\n<meta property=\"og:description\" content=\"Nannies and senior home-care workers are not independent contractors. &nbsp;&ldquo;Most workers [who are classified as independent contractors] are employees under the FLSA&rsquo;s broad definitions.&rdquo; ~ David Weil, Administrator, US Department of Labor Wage and Hour &nbsp; Nannies and senior home caregivers are almost always employees of the hiring family, yet every year thousands of families classify their nanny or senior caregiver as an &quot;independent contractor&quot; and fail to pay the employment taxes and unemployment taxes on the wage they pay their family&#039;s nanny.The IRS estimates that fewer than one in five famlies with a household employee comply with the payroll, tax, and reporting requirements in the tax code. 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